Posted on 11 May 2020
WWF strongly recommends that companies and financial investors end their business relationships with SMG/APP and its affiliates and do not engage in any new contract with companies that are disassociated from FSC, such as SMG/APP and its affiliates.
The Sinar Mas Group’s Asia Pulp & Paper (SMG/APP) has a legacy of over 30 years of more
than 2 million hectares of deforestation, destruction of wildlife habitat, fires and greenhouse gas emissions
from peat development, and conflicts with local communities related to land grabbing, forest clearance and
pulpwood plantation development in Sumatra and Kalimantan, Indonesia (see timeline of deforestation here
APP has been publishing declarations on its own of progress regarding various aspects of its policy implementation, but failed to provide any transparent information on a wide range of key issues. Independent monitoring by Indonesian NGOs revealed that SMG/APP:
- Repeatedly missed its zero-deforestation targets.
- Made minimum progress to implement its 2014 commitment to restore or conserve 1 million hectares of natural forest and peatlands.
- Continue to face challenges to resolve social conflicts.
SMG/APP has also been disassociated by Forest Stewardship Council (FSC), widely considered as the most robust certification system ensuring environmentally responsible, socially beneficial and economical viable management of forests. This means that SMG/APP is not allowed to have any association of any kind
with FSC, including use of any of its certificates and trademarks.
WWF strongly recommends that companies and financial investors end their business relationships with SMG/APP and its affiliates and:
1) Do not enter into any new contract with companies that are disassociated from FSC, such as SMG/APP and its affiliates.
2) Publish a sustainable pulp & paper procurement policy with a time-bound plan to (a) increase sourcing of FSC certified or recycled products and to (b) eliminate products from companies that are disassociated from FSC.
3) Publish progress against the time-bound plan (see full advisory)